Sales for 2021 look good for Moonpig
Moonpig Group plc, the online greeting card and gifting platform in the UK and the Netherlands, held its Annual General Meeting on the 28th of September 2021. In advance of this, the Group provided an update on its performance from 30 April 2021 to date.
So far, trading in the year to date for the company has been strong. Frequency remains elevated following a limited change in consumer mobility through the summer, despite the lifting of lockdown restrictions.
In light of this, Moonpig raised their guidance for Group revenue in FY22, which they expect to be between approximately £270 million and £285 million.
The company also announced that they have invested at a higher rate in the long-term growth drivers of their business, including promotional activity to drive strategic levers, such as app downloads and customer reminder setting, and the development of their technology platform.
The company expects the data they collect as people return to offices and conditions normalise to provide important insights going forward. However, at the current time, their view on underlying growth trends, medium-term growth and margin targets, remains unchanged.
Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown: “Moonpig’s flying pandemic sales haven’t yet come down to earth with a bump. Despite the lifting of restrictions and the extra competition from high street card retailers, business was still benefiting from an ongoing trend to buy cards and gifts online.
“With the company still rooting out sales, it’s increased its revenue guidance for the year to around £270 million to £285 million from a previous forecast of up to £260 million. But that won’t necessarily translate to a similar uplift in profits, as hanging onto newly acquired customers is a costly business and the company has budgeted for a big marketing drive, including promotions to drive app downloads.
“It knows that when more workers do return to the office, they’ll have a chance to nip out at lunchtime again to pick up presents and cards, and bricks and mortar retailers are likely to also up their game in competition. But it’s now acquired a huge data set on customer choices and preferences, which alongside its flexible delivery options, should help it stay ahead of the herd for now.”